Permanent Partial Disability in Workers' Comp Claims

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Permanent partial disability (PPD) claims are
the most common type of workers' compensation cases, making up over half of all
workers' comp claims nationwide. Permanent partial disabilities can be caused by
either a work-related injury or an occupational disease. PPD means that some form of
permanent impairment exists, which makes a worker unable to perform at his or her full
capacity. Permanent partial disability is different than a total disability, which means a person can't work at all (or is presumed to be totally disabled because of a loss of both eyes, both hands, or total paralysis).

Common Injuries

Permanent partial disability can occur as a result of a wide range of medical conditions. Back
injuries are by far the most common type of permanent partial injuries; however, there are many other injuries and illnesses that fall under this category. Other
common examples include:

carpal tunnel syndrome

amputation of a body part, such as a finger or a hand

hearing loss

loss of vision in one eye

knee injury

nerve damage, or

PTSD, also known as post traumatic stress
disorder.

Amount of Compensation

Because workers' compensation is
administered on a state-by-state basis, compensation varies by location. Most
states use a disability schedule to determine PPD compensation amounts.
Compensation can depend on the severity of the disability, according to a
doctor's rating. For example, someone with a 25% disability will receive less
than someone with a 50% disability. Other states base their PPD benefits on the estimated loss of future earnings or the loss of actual and ongoing wages.

Taxes

Generally, workers' compensation benefits
are exempt from taxes. However, workers' compensation settlements may have an
effect on other taxable disability payments. Because tax laws are often
confusing, lawyers frequently help people understand how taxes will impact
their finances. In some cases, a person may qualify for a disability tax
credit, reducing the amount of taxes they have to pay. Qualifying for a
disability tax credit depends on many factors, such as age, residency, and
total income including non-taxable benefits.